* Canadian dollar weakens 0.2 percent against the greenback
* Domestic housing starts unexpectedly fell in September
* Price of U.S. oil rises 0.6 percent
* Canadian bond prices edge higher
TORONTO, Oct 9 (Reuters) - The Canadian dollar lost ground against its U.S. counterpart on Tuesday as the greenback broadly strengthened and the International Monetary Fund cut its forecast for global economic growth in 2018 and 2019. The IMF said that the U.S-China trade war was taking a toll and emerging markets were struggling with tighter liquidity and capital outflows. Canada's economy could suffer if global growth slows, since it exports many commodities, including oil. Seven-year highs for U.S. Treasury yields helped boost the greenback against a basket of other major currencies, while concerns over Italy's budget pressured the euro.
At 9:39 a.m. (1339 GMT), the Canadian dollar was
trading 0.2 percent lower at 1.2989 to the greenback, or 76.99 U.S. cents. The currency, which on Monday touched its weakest intraday in more than one week at 1.3010 to the dollar, traded in a range of 1.2953 to 1.3004. The loonie's decline came as data from the Canadian Mortgage and Housing Corp showed a surprise drop in domestic housing starts to a seasonally adjusted annualized rate of 188,683 units in September from a revised 198,843 units in August.
The price of oil rose on growing evidence of falling crude exports from Iran before the imposition of new U.S. sanctions.
U.S. crude prices were up 0.6 percent at $74.72 a barrel.
On Monday, Irving Oil Corp shut its 320,000 barrel-per-day refinery in Saint John, New Brunswick, after an explosion and a major fire that followed. The loonie declined 0.3 percent last week despite a deal to revamp the North American Free Trade Agreement and data on Friday showing a jump in domestic jobs. Canadian government bond prices edged higher as the domestic debt market reopened following the Thanksgiving Day holiday on
Monday. The 10-year rose 9 Canadian cents to yield
2.591 percent. On Friday, the 10-year yield touched its highest intraday since January 2014 at 2.615 percent.
(Reporting by Fergal Smith; Editing by Steve Orlofsky)